Executive Summary

Jul 2019
PROSPECTS
Affordable cigarillos strongest performer in retail volume terms

Cigarillos was the only positive performer in retail volume terms within cigars, cigarillos and smoking tobacco in 2018. Increasing taxes resulted in higher unit prices across the category.

Niche category of cigars mainly appeals to affluent consumers

With the increasingly high prices of cigars in New Zealand due to rising taxes, this niche category continued to record strong retail volume decline in 2018. However, similar to cigarillos, there was a notable trend towards small cigars, which continued to gain volume share from standard cigars, while demand for the large format continued to wane as it recorded the strongest decline in volume sales.

Lack of innovation for pipe tobacco, while fine cut records strongest volume decline

The largest category in value terms, smoking tobacco, continued to decline in retail volume terms as it recorded the highest unit price increases within fine cut tobacco, resulting in its stronger volume decline compared to pipe tobacco. The latter remained a niche in New Zealand, perceived as an outdated and traditional tobacco format, mostly purchased by older consumers, although there was also low demand for smokers of shisha.

COMPETITIVE LANDSCAPE
Positive performers within declining fine cut tobacco

The large but declining category of fine cut tobacco continued to be dominated by multinationals in 2018, led by British American Tobacco (New Zealand) Ltd, holding more than double the retail volume share of its nearest competitor Imperial Tobacco New Zealand Ltd. Although the majority of the leader’s brands recorded strong declining sales, its newer brand within the category, Rothmans Red, recorded another year of impressive retail volume growth.

In line with its stronger growth, cigarillos sees impressive performances

The strongest performing cigarillos continued to be led by Philip Morris (New Zealand) Ltd in 2018 with its leading brand Willem II Wee Willem. However, the player is starting to focus its efforts on heated tobacco in the country, and lost some retail volume share to more dynamic performers including Davidoff Mini Cigarillos from Genève Davidoff & Cie (with triple-digit volume growth from a low base), Montecristo Minis from Corporación Habanos SA, and Romeo y Julieta Mini from Corporación Habanos SA, all supported by the demand for smaller cigarillos in 2018.

Consumers look to economy brands to make savings

With consumers looking to make savings amidst increasing costs for smoking tobacco, smaller pack sizes were appreciated and are likely to see some demand over the forecast period despite overall declining volume sales.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Cigars, Cigarillos and Smoking Tobacco industry in New Zealand with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Cigars, Cigarillos and Smoking Tobacco industry in New Zealand, our research will save you time and money while empowering you to make informed, profitable decisions.

The Cigars, Cigarillos and Smoking Tobacco in New Zealand market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as: 

  • What is the market size of Cigars, Cigarillos and Smoking Tobacco in New Zealand?
  • What are the major brands in New Zealand?
  • What are the main distribution channels for cigars in New Zealand and which are performing well?
  • What is the proportion of hand-made versus machine manufactured cigars in New Zealand?

Why buy this report?

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  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport:

Tobacco market research database

Cigars, Cigarillos and Smoking Tobacco in New Zealand - Category analysis

HEADLINES

PROSPECTS

Affordable cigarillos strongest performer in retail volume terms
Niche category of cigars mainly appeals to affluent consumers
Lack of innovation for pipe tobacco, while fine cut records strongest volume decline

COMPETITIVE LANDSCAPE

Positive performers within declining fine cut tobacco
In line with its stronger growth, cigarillos sees impressive performances
Consumers look to economy brands to make savings

CATEGORY DATA

Table 1 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2013-2018
Table 2 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2013-2018
Table 3 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2013-2018
Table 4 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2013-2018
Table 5 Sales of Cigars by Size: % Volume 2013-2018
Table 6 NBO Company Shares of Cigars and Cigarillos: % Volume 2014-2018
Table 7 LBN Brand Shares of Cigars and Cigarillos: % Volume 2015-2018
Table 8 NBO Company Shares of Cigars: % Volume 2014-2018
Table 9 LBN Brand Shares of Cigars: % Volume 2015-2018
Table 10 NBO Company Shares of Cigarillos: % Volume 2014-2018
Table 11 LBN Brand Shares of Cigarillos: % Volume 2015-2018
Table 12 NBO Company Shares of Smoking Tobacco: % Volume 2014-2018
Table 13 LBN Brand Shares of Smoking Tobacco: % Volume 2015-2018
Table 14 NBO Company Shares of Pipe Tobacco: % Volume 2014-2018
Table 15 LBN Brand Shares of Pipe Tobacco: % Volume 2015-2018
Table 16 NBO Company Shares of Fine Cut Tobacco: % Volume 2014-2018
Table 17 LBN Brand Shares of Fine Cut Tobacco: % Volume 2015-2018
Table 18 Distribution of Cigars and Cigarillos by Format: % Volume 2013-2018
Table 19 Distribution of Smoking Tobacco by Format: % Volume 2013-2018
Table 20 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2018-2023
Table 21 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2018-2023
Table 22 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2018-2023
Table 23 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2018-2023

Tobacco in New Zealand - Industry Overview

EXECUTIVE SUMMARY

Positive value sales for tobacco supported by rising prices due to tax hikes
Heated tobacco products launch in New Zealand
Plain packaging legislation proves restrictive for tobacco players
Supermarkets continue to gain share across many tobacco categories
Strong demand for smoking alternatives to drive growth over forecast period

OPERATING ENVIRONMENT

Legislation
Legislative overview
Summary 1 Legislation Summary at a Glance
Minimum legal smoking age
Smoking prevalence
Tar levels
Health warnings
Plain packaging
Point-of-sale display bans
Smoking in public places
Flavoured tobacco product ban
Reduced harm
Vapour products

PRODUCTION/IMPORTS/EXPORTS

MARKET INDICATORS

Table 24 Number of Adult Smokers by Gender 2013-2018

MARKET DATA

Table 25 Sales of Tobacco by Category: Volume 2013-2018
Table 26 Sales of Tobacco by Category: Value 2013-2018
Table 27 Sales of Tobacco by Category: % Volume Growth 2013-2018
Table 28 Sales of Tobacco by Category: % Value Growth 2013-2018
Table 29 Forecast Sales of Tobacco by Category: Volume 2018-2023
Table 30 Forecast Sales of Tobacco by Category: Value 2018-2023
Table 31 Forecast Sales of Tobacco by Category: % Volume Growth 2018-2023
Table 32 Forecast Sales of Tobacco by Category: % Value Growth 2018-2023

SOURCES

Summary 2 Research Sources